Microsoft confirmed that it is acquiring Israeli cyber security startup Aorato in a deal reportedly worth $200M. Aorato’s focus is on enterprise services in the cloud and in hybrid on-premise and cloud environments, using machine learning to detect suspicious patterns.

Microsoft Corporate Vice President Cloud and Enterprise Marketing Takeshi Numoto said on his blog today, “I’m pleased to announce today that Microsoft has acquired Aorato, an innovator in enterprise security. We are making this acquisition to give customers a new level of protection against threats through better visibility into their identity infrastructure. With Aorato we will accelerate our ability to give customers powerful identity and access solutions that span on-premises and the cloud, which is central to our overall hybrid cloud strategy.”

“We are excited about the technology that Aorato has built and, especially, the people joining the Microsoft team through this acquisition. In the mobile first, cloud first era, Microsoft is committed to moving nimbly and aggressively to provide customers with solutions to their top challenges.”

Aorato has raised $11M to date, including a $10M round in January from Accel Partners, Eric Schmidt’s Innovation Endeavors, and Glilot Capital Partners, and private investors MIckey Boodaei and Rakesh Loonkar. Aorato was founded in 2012 by CEO Idan Plotnik, VP R&D Michael Dolinsky, and VP professional services Ohad Plotnik. The company is based in Herzliya and has 10 employees.

All the founders served in the IDF cyber security unit, and have a decade of experience in the field. The company says that its product is “the first context-aware, behavior-based Directory Services Application Firewall (DAF). The company’s solution profiles, then not only learns, but also predicts entities’ behaviors enabling context aware real-time decision making.”

The Plotnik brothers previously founded Foreity which was acquired by Aman Group in 2012.

Recent acquisitions in Israel by Microsoft include video search company VideoSurf in 2011 and 3DV ventures and gesture recognition company 3DV Systems in 2009.

Congratulations Aorato!

Read the full story on globes here.

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